In 2004, revenue in the online book business is expected to reach $2.8 billion. The market continues to enjoy a steady rise in revenue as consumers grow more comfortable with electronic commerce and as the number of Internet users in the US continues to climb (155 million in 2004).

Since 1998, the Internet has increasingly emerged as a viable alternative to buying books at physical retail store locations. There are approximately eight books sold in stores for every one book sold online in 2004. The proportion of in-store sales versus online sales of books continues to tip heavily in favor of physical store locations by an 8-to-1 ratio.

In 2004, revenue in the online book business is expected to reach $2.8 billion. The market continues to enjoy a steady rise in revenue as consumers grow more comfortable with electronic commerce and as the number of Internet users in the US continues to climb (155 million in 2004).

Since 1998, the Internet has increasingly emerged as a viable alternative to buying books at physical retail store locations. There are approximately eight books sold in stores for every one book sold online in 2004. The proportion of in-store sales versus online sales of books continues to tip heavily in favor of physical store locations by an 8-to-1 ratio.

As much as consumers have altered their book-buying habits, printed media remains the backbone of the book publishing trade. According to Mintel’s exclusive consumer research, an estimated 38% of Internet users purchase books from online book sites. The majority of book-buying respondents cite three main reasons to continue shopping at physical bookstore locations:

The survey further indicates that while respondents have an affinity for book shopping at physical retail locations, they also taking advantage of the convenience found in online book buying. For many consumers, physical channels and online channels complement one another.

For the purposes of this report, online books are those of all types and formats—including eBooks, audio books, and textbooks—that are purchased through an online source. This report covers the sale of books over the Internet, including hardcover books, paperback books, eBooks, and audio books. The report excludes revenue and activity from other products sold through online book merchants, such as music CDs, DVDs, video cassettes, magazines, and gift cards. The report also excludes retail sales of books through traditional stores, covered in Mintel’s Book Retailing, consumer intelligenceU.S. report, June 2004.

A number of U.S. consumer intelligence reports covering related sectors have been published, are planned, or are in preparation, including:

American Lifestyles—U.S. consumer intelligence, December 2004

Online Recruitment—U.S. consumer intelligence, December 2004

The Teen Consumer—U.S. consumer intelligence, November 2004

Young Adults—U.S. consumer intelligence, November 2004

Online Trading—U.S. consumer intelligence, November 2004

Baby Boomers—U.S. consumer intelligence, October 2004

Online Banking—U.S. consumer intelligence, October 2004

Urban Lifestyles—U.S. consumer intelligence, October 2004

Clothing Catalogues/e-tailing—U.S. consumer intelligence, September 2004

Older Adults—U.S. consumer intelligence, September 2004

Online Music (Music E-tailing)—U.S. consumer intelligence, August 2004

Book Retailing (Bookstores)—U.S. consumer intelligence, June 2004

Hispanics & Media/Internet—U.S. consumer intelligence, February 2004

Hispanics & Entertainment/Leisure—U.S. consumer intelligence, January 2004

Youth and Wireless—U.S. consumer intelligence, October 2003

Internet Travel—U.S. consumer intelligence, September 2003

PC Aftermarket Peripherals & Components—U.S. consumer intelligence, July 2003

Personal Computer Peripherals—U.S. consumer intelligence, July 2003

Home Personal Computers—U.S. consumer intelligence, May 2003

Discount Retailing—U.S. consumer intelligence, April 2003

Music Retailing—U.S. consumer intelligence, March 2003

Cable and Satellite Services—U.S. consumer intelligence, December 2003